PancakeSwap on the verge of reducing its total supply of CAKE tokens:
- PancakeSwap could reduce the total supply of its CAKE token from 750 million to 450 million.
- Over 99.95% of the community, representing 70,000 votes from CAKE holders, favored the proposal.
- If adopted, this reduction will be implemented by January 4, 2024.
Towards a reduction in the total supply of CAKE tokens?
PancakeSwap, a decentralized exchange (DEX), could reduce the supply of its CAKE token by 300 million.
Indeed, the governance of PancakeSwap (DAO) has recently proposed to reduce the maximum supply of CAKE from 750 million to 450 million tokens, during a vote that started this morning and will end Friday at 9:00. Currently, this proposal has been favorably received by the majority of its voting community.
Nearly 99.95% of the voters, representing approximately 70,000 votes held by $CAKE holders, have voted in favor of the proposal.
Following this proposal, the price of the CAKE token has increased by nearly 9%. Note that the majority of this increase occurred shortly after the start of the governance vote.
A change favorable to PancakeSwap’s growth
If the proposal is adopted, the reduction will be implemented by January 4, 2024. A member of the PancakeSwap team has indicated that this reduction places the project in a favorable position to continue its growth in the market.
With a current circulating supply of 388 million CAKE, the team believes that this lower ceiling will be sufficient to “gain market share across all blockchains” and “support the veCAKE model.”
